Ha Sustainable Infrastructure Capital, Inc. · NYSE:HASI
Ha Sustainable Infrastructure Capital — Q3 2020 Earnings Presentation
24 slides from Ha Sustainable Infrastructure Capital's earnings presentation, Nov 5, 2020
Slide 1: Earnings Presentation Third Quarter 2020
EARNINGS PRESENTATION Third Quarter 2020
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Some of the information contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used herein, words such as "believe," "expect," "an
Slide 3: Investing in Climate Change Solutions
INVESTING IN CLIMATE CHANGE SOLUTIONS Recent Highlights1 • Grew YOY YTD GAAP EPS 44% to $0.78 and Core EPS (Pre-CECL Provision) 18% to $1.19 Key Performance Indicators 3Q20 3Q19 • Closed $716m transactions in 3Q20 and $1.1b YTD GAAP $0.28 $0.13 • Lowered weighted-average cost of debt and extended ma
Slide 4: Pipeline Remains Robust
PIPELINE REMAINS ROBUST Markets Weighted toward energy efficiency Behind-the-Meter Solar (residential, C&I, community) remain strong with increasing storage attachment GC 27% Well-balanced between onshore wind, Pipeline1 Grid-Connected solar land, and utility-scale solar, including >$2.5b select pro
Slide 5: Portfolio Diversifies Further
PORTFOLIO DIVERSIFIES FURTHER Markets Energy Efficiency Behind-the-Meter Distributed Solar Public Solar Sector Land Yield: 8.1% Storage 19% 19% Green Real Estate1 3% Balance Sheet2 Grid-Connected Onshore Wind C&I Solar Land 6% ~$2.2b Onshore Yield: 7.1% Yield: 7.7% Wind 21% Sustainable Stormwater Re
Slide 6: 3Q20 Results
3Q20 RESULTS Results, Unaudited1 3Q20 3Q19 YTD20 YTD19 Commentary ($ in millions, except per share figures) GAAP Earnings $21.2 $9.1 $57.5 $35.5 GAAP Diluted EPS $0.28 $0.13 $0.78 $0.54 Core Earnings $25.3 N/A $82.5 N/A Higher investment and gain on sale revenue partially offset by interest expense
Slide 7: Growth in Recurring Core NII and Managed Assets Continues
GROWTH IN RECURRING CORE NII AND MANAGED ASSETS CONTINUES Core Net Investment Income1 Managed Assets Off Balance Sheet Balance Sheet Portfolio $100 $7 $6.4 $82 $6.2 $80 $6 $68 $67 $5.3 $4.7 $2.2 $ in millions $62 $5 $2.1 $58 $ in billions $60 $3.9 $2.0 $48 $4 $3.1 $2.0 $40 $36 $3 $1.6 $1.3 $2 $20 $1
Slide 8: Climate-Positive Investing Proving Resilient
CLIMATE-POSITIVE INVESTING PROVING RESILIENT1 Cumulative Total Annual Average Unsecured Bond Yields Shareholder Return2 (2015 - 2020) 15% (5yr) 400 HASI 27% 350 S&P US High 10% Yield Corporate Total Return % 300 Bond Energy Index 250 S&P 500 >8% 14% 200 2025s 5% 2030s 150 HASI 2024s 100 Fossil Fuel
Slide 9: Durable Capital Structure
DURABLE CAPITAL STRUCTURE Recent Debt Issuance Summary Demonstrated access to diversified funding sources Term HY Notes Convertible Notes • Raised $1.1b in debt and equity YTD, including: Issue $375m $144m • $775m in unsecured green bonds (including $375m Maturity 2030 2023 maturing in 2030 at a 3.7
Slide 10: Balance Sheet Update
BALANCE SHEET UPDATE 9/30/20 Expanded Liquidity Assets ($ in millions)1 • Increased cash liquidity to $881m after raising >$500m in Cash $881 green unsecured high yield and convertible bonds Equity method investments 719 Government receivables 251 Commercial receivables 849 Real estate 360 Investmen
Slide 11: Portfolio Performance and Counterparty Credit
PORTFOLIO PERFORMANCE AND COUNTERPARTY CREDIT Recent Portfolio Performance Counterparty Credit Other Equity Balance Sheet Method Investments Government 13% Portfolio (%) Typically preferred Typically senior in Rating Description 27% structure 3Q20 in structure $2.2b IG: 100% Portfolio 23% 1 Performi
Slide 12: Industry-Leading ESG
INDUSTRY-LEADING ESG Recent Donations Joined Partnership for Carbon Accounting Financials (PCAF) E Environmental Raised >$500m in green bonds Significant donation to organizations addressing racial injustice and supporting voting rights S Social Hired DEIJ1 consultant to inform a multi-year plan MSC
Slide 13: Hannon Armstrong's Proven Business Model
HANNON ARMSTRONG’S PROVEN BUSINESS MODEL • Raised $1.1b and committed to invest $1.0b despite global pandemic and economic crisis 1 Proven Resilience • Portfolio has performed as expected in large part due to the fact that virtually all assets save obligors money • Robust pipeline from leading energ
Slide 14: Appendix
APPENDIX
Slide 15: Supplemental Financial Data
SUPPLEMENTAL FINANCIAL DATA Explanatory Notes Core Earnings and Earnings on Equity Method Investments We calculate core earnings as GAAP net income (loss) excluding non-cash equity compensation expense, certain provisions for loss on receivables, amortization of intangibles, any one-time acquisition
Slide 16: Supplemental Financial Data
SUPPLEMENTAL FINANCIAL DATA Explanatory Notes Managed Assets As we both consolidate assets on our balance sheet and securitize assets off-balance sheet, certain of our receivables and other assets are not reflected on our balance sheet where we may have a residual interest in the performance of the
Slide 17: Supplemental Financial Data
SUPPLEMENTAL FINANCIAL DATA Explanatory Notes Portfolio/Credit Quality Footnotes Equity investments in various renewable energy and energy efficiency projects. These investments are typically owned in holding companies where our equity “Other Equity Method Investments” interests are typically senior
Slide 18: Income Statement
INCOME STATEMENT —— HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Revenue Interest income $ 2
Slide 19: Balance Sheet
BALANCE SHEET December 31, ———— HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) September 30, 2020 Assets Cash and cash equivalents $3 881487 $ Equity method investments 718,793 Government receivables 250,9
Slide 20: Reconciliation of GAAP Net Income to Core Earnings
RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS 20
Slide 21: Reconciliation of GAAP Net Income to Core Earnings
RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS 21
Slide 22: Additional GAAP to Core Reconciliations
ADDITIONAL GAAP TO CORE RECONCILIATIONS 22
Slide 23: Additional GAAP to Core Reconciliations
ADDITIONAL GAAP TO CORE RECONCILIATIONS 23
Slide 24: Visit our website at www.hannonarmstrong.com
Visit our website at www.hannonarmstrong.com Securities are offered by Hannon Armstrong Securities, LLC, a registered broker dealer, member FINRA and SIPC and subsidiary of Hannon Armstrong Sustainable Infrastructure Capital, Inc.
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